Bill Text: NJ A4712 | 2022-2023 | Regular Session | Introduced
Bill Title: Removes certain entities from regulation under the "New Jersey Insurance Fair Conduct Act."
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-10-11 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A4712 Detail]
Download: New_Jersey-2022-A4712-Introduced.html
Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman ELLEN J. PARK
District 37 (Bergen)
SYNOPSIS
Removes certain entities from regulation under the "New Jersey Insurance Fair Conduct Act."
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain unreasonable practices in the business of insurance and amending P.L.2021, c.388.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2021, c.388 (C.17:29BB-2) is amended to read as follows:
2. As used in this act:
"First-party claimant" or "claimant" means an individual injured in a motor vehicle accident and entitled to the uninsured or underinsured motorist coverage of an insurance policy asserting an entitlement to benefits owed directly to or on behalf of an insured under that insurance policy.
"Insurer" means any [individual,] corporation, association, partnership or other legal entity which issues, executes, renews or delivers an insurance policy in this State[, or which is responsible for determining claims made under the policy]. "Insurer" shall not include an insurance producer as defined in section 3 of P.L.2001, c.210 (C.17:22A-28) or a public entity.
"Public entity" means the State, any county, municipality, district, public authority, public agency and any other political subdivision or public body in the State, including a joint insurance fund of a public entity.
(cf: P.L.2021, c.388, s.2)
2. This act shall take effect on the 90th day next following the date of enactment.
STATEMENT
This bill amends the "New Jersey Insurance Fair Conduct Act" to remove certain entities from the definition of "insurer" and, in so doing, removes those entities from regulation under that act. The bill removes from the definition of "insurer" any individual and certain entities that are responsible for determining claims made under a policy, but do not issue, execute, renew, or deliver the insurance policy.
The "New Jersey Insurance Fair Conduct Act" establishes a private cause of action for first-party claimants regarding certain unfair or unreasonable practices by their insurer. Pursuant to that law, a claimant who is unreasonably denied a claim for coverage or payment of benefits or who experiences an unreasonable delay for coverage or payment of benefits, under an uninsured or underinsured motorist policy by an insurer, may file a civil action against the insurer. Pursuant to the bill, individuals and entities that are only responsible for determining claims would not be subject to those civil actions.
